Ministry of Mines Gazette Notification — 06-Jun-2024

Executive Summary & Key Takeaways

Key Changes

Schedule II outlines the format for submitting proposals for auction to grant a composite license, including required details and attachments.
The rules apply to all minerals in offshore areas except mineral oils, hydrocarbons, and minerals specified in Part B of the First Schedule to the Mines and Minerals (Development and Regulation) Act, 1957, that have a grade equal to or greater than the threshold value notified by the Central Government.
The notification defines key terms such as 'Act,' 'conforming,' 'existence of mineral resources,' 'threshold value of minerals,' and various exploration stages and resource categories, aligning with the United Nations Framework Classification (UNFC) and the Committee for Mineral Reserves International Reporting Standards (CRIRSCO) Template.
For granting a production lease, an area must have completed at least General Exploration (G2) to establish Indicated Mineral Resource (332), and a geological study report must be prepared conforming to Part IV of Schedule-I.
For granting a composite license, an area must have completed at least Reconnaissance Survey (G4) to estimate Reconnaissance Mineral Resource (334) or have identified the mineral potentiality based on available geoscience data, and a geological study report must be prepared conforming to Part IV of Schedule-I.
The notification outlines a process for submitting proposals for auction to grant composite licenses, including the format specified in Schedule-II and the establishment of a committee to identify mineral potentiality.
The administering authority, with the Central Government's approval, may relax exploration norms specified in Part-III of Schedule-I based on local geological conditions, mode of occurrence, and nature of mineralization.
Schedule-I provides detailed definitions for exploration stages, resource categories, and geological parameters, including specific requirements for different types of mineral deposits. It also includes a standard template for geological study reports and the contents of pre-feasibility and feasibility reports.

What it means

The gazette notification introduces the Offshore Areas (Existence of Mineral Resources) Rules, 2024. These rules define the criteria for determining the existence of mineral resources in offshore areas and the exploration norms required for granting production leases and composite licenses. The rules specify the exploration stages, resource categories, and geological parameters necessary for establishing the existence of mineral resources.

Impact Analysis

Stakeholders Impacted

Financial Institutions: These institutions will use the defined resource categories and feasibility study requirements to assess the viability of offshore mining projects before providing funding.

Suggested Action Items

Financial institutions should update their due diligence processes to incorporate the new resource categories and feasibility study requirements.

Key Entities Referenced

Offshore Areas Mineral (Development and Regulation) Act, 2002: The principal legislation governing the development and regulation of mineral resources in offshore areas. Mines and Minerals (Development and Regulation) Act, 1957: The legislation governing the development and regulation of mines and minerals in India, particularly concerning minerals specified in Part B of the First Schedule. Indian Bureau of Mines (IBM): The agency responsible for specifying threshold values of minerals based on beneficiability and marketability. Geological Survey of India (GSI): The agency involved in marine and coastal surveys and assessing mineral potentiality. Ministry of Environment, Forest and Climate Change: The ministry responsible for environmental clearances and regulations related to mining activities. United Nations Framework Classification (UNFC): An international standard for classifying mineral resources and reserves. Committee for Mineral Reserves International Reporting Standards (CRIRSCO): An international organization that sets standards for reporting mineral resources and reserves.

Offshore Areas (Existence of Mineral Resources) Rules, 2024